Most of them are in a flood zone, but they didn't flood back in 1979 when most of the city was under water.  

I ended up investing in 3 deals with Western Wealth Capital in 2021. 1 is underwater and they couldnt raise sufficient funds for capital call. 

Rehab costs, holding costs, and the ARV will be the largest cash eaters or cash producers with this deal.If you underestimated the rehab (both costs and time) and overestimated the ARV, you could be underwater very quickly. 

@Jonathan B.On a reverse mortgage no, but if it’s going to foreclosure then it’s typically because it’s upside down / under water or there is no heirs.You could call the attorney and ask if they will let you know what the opening bid or payoff is on the property or do a case search on the county website and see the complaint as that will typically tell you the amount.

In fact two week ago I tried reasoning with a brainwashed Pace Morby follower in these forums who stated he would  happily complete a seller finance deal for more than FMV value, effectively putting him under water if he could acquire the property without using any of his money and the property cash flowed.

There will be a breaking point, and once investors pull out and lots of underwater homeowners go in foreclosure, things will change.

Chris I think they can get a deficiency even on a primary.. at least it was that way pre 08 as I had a few clients that were buying RE from us that had that issue trying to relocate and were under water in Texas.. 

This can be complicated, especially if some unit owners are underwater on their mortgages.

I checked with the state and the state will not allow utilities to be ran underwater to the property across the lake.

Then the properties did not perform the buyers were counting on a little cash flow Delta that over time evaporated they had no ability to refi they were underwater on the exit  IE sales cost and bringing loan current exceeded equity thereby needing cash to close..